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Stats: 2,295,036 members, 5,041,457 topics. Date: Wednesday, 17 July 2019 at 07:35 AM

Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper - Politics (3) - Nairaland

Nairaland Forum / Nairaland / General / Politics / Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper (11361 Views)

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Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by confyy007(m): 4:37pm On Jun 10
I don't understand why a country so blessed would go through such loss
Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by bishopkay: 4:56pm On Jun 10
blackpanda:


so why havent they been working since obj

Same reason you air heads said u wanted buhari. So all of a sudden he's now to be compared to the "16 wasted PDP years"?

How u guys shift the post shocks me. Lol
Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by Nobody: 5:08pm On Jun 10
blackpanda:


so why havent they been working since obj

Because subsidy.

If they fixed the refinereis, they would be operating at a loss...as subsidy forces NNPC to sell petrol...the main product of most refinereis, at a price below the production price (and government just pays the difference between the subsidised price and the production cost).

And because NNPC is not making profit....they can't make enough money themselves to build new refinereis.

If NNPC was privatised, and allowed to make a profit, all these issues won't be there. It is because it is run as a government compmpany (inefficently, and as it is rumored, with corruption) that things can't be run well.

The reason why TAM has not been done in the last 4 years is because in essence, government is shopping for a cheap deal to repair them refineries.

As the article puts it...

The NNPC had planned to rehabilitate the refineries in order to attain a minimum of 90 per cent capacity utilisation, using third-party financiers and the original refinery builders to provide the requisite funding and technical support.

The corporation, its transaction advisers and an inter-ministerial team on refineries rehabilitation, were said to have reviewed expressions of interest from 28 potential financiers.

But after over one and half years, the negotiations with financiers stalled in December 2018 due to varying positions on key commercial terms.


The NNPC said it had abandoned the strategy of seeking offshore funding due to ‘onerous conditions’ demanded by the proposed financiers.


In other words...NNPC does not have the money to fix refienreis...so it has to take a loan to do so...that's what the financiers are there for. Without subsidy...it would have ahd enough profits to finance the TAM sans taking loans.

Subsidy is the problem....the big elephant in the room.

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Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by lilyheaven: 5:16pm On Jun 10
ALMUSTAQIM:
FAKE NEWS

FIGMENT OF IMAGINATION

UNSUBSTANTIATABLE FACT

HATER SPOTTED
How is it fake,
Which of the mentioned refinery do you work?
Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by altruisticlomo(m): 5:33pm On Jun 10
oz4real83:
I said in 2015 that I won't say anything against Pmb until I have watched his work after four years.Four years are enough to create an opinion about something. I am bold to conclude now that like his predecessors the pdp,he is a total failure. We need new set of leaders in the country.
I also fell for his deceit thinking he was going to make the changes we all expected but all to no avail have been in the doldrums now wondering where this incompetent man is leading us to.... evil perpeterators

1 Like

Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by obailala(m): 5:45pm On Jun 10
The first thing Dr Kachikwu proposed when he was appointed head of NNPC was for those refineries to be sold off if there must be any kind of productivity. The old mallam roundly rejected it, making Kachikwu look like a fool. Sometimes I still wonder why Kachikwu remained in this government.

1 Like

Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by Collinsanele: 5:50pm On Jun 10
Joromi12:
Lose how. What kind of mushroom reporting is this. Money was not spent on them. So how dem lose

The money lost is the money from the sale of the products the refineries would have produced if they were in operation during those months of being idle (opportunity cost).
Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by altruisticlomo(m): 5:55pm On Jun 10
Eteka1:
Those refineries have not been working long before 2015, and the government of President Buhari has decided not to invest in trying to make them work cos it will amount to throwing good money after bad. The government rather decided to support Dangote by facilitating the loans needed for the construction of the 650,000 BPD Dangote refinery located at the Lekki Free Trade Zone. The government has also encouraged other investors to build modular refineries, licences have been issued and some of them are already under construction in other parts of the country.
so what bring about this heartrending news
Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by jaytee01(m): 6:09pm On Jun 10
It's no longer a secret that the lifeless one is an unmitigated disaster.
Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by Almujahb(m): 6:16pm On Jun 10
Those refineries wil continue suffering huge loses if federal governent continue its rehabilitation because some group of pple ar using it as opportunity to loot fund under the innocent man of God alhaji muhammodu buhari almahbub (the beloved) i wil advice he disposed does refineries or comercialize dem.
TheLogicalMind:
The nation’s refineries suffered huge losses in the first four years of President Muhammadu Buhari’s administration as they were left in a state of disrepair, ’FEMI ASU writes



Federal Government-owned refineries, located in Port Harcourt, Kaduna and Warri, lost over N231bn in the last four years as the proposed rehabilitation of the plants suffered a setback.

The Port Harcourt Refining Company has two refineries, while the Warri Refining and Petrochemical Company and the Kaduna Refining and Petrochemical Company have one each.

The refineries lost N34.57bn from June to December 2015; N8.64bn in 2016 (data for January to August showed); N47.19bn in 2017, and N132.51bn in 2018, according to the Nigerian National Petroleum Corporation.

When President Muhammadu Buhari assumed office on May 29, 2015, all the refineries were not processing crude oil, with Port Harcourt refinery sitting idle since January of that year while Warri and Kaduna stopped refining in February of the same year, according to available data from the NNPC.

In 2015, Port Harcourt, Kaduna and Warri refineries were idle for eight months, seven months and nine months, respectively, losing N10.05bn, N36.03bn and N21.39bn.

Warri refinery was idle for five months in 2016; KRPC did not refine crude for six months, and PHRC was only idle in September.

In 2017, Kaduna, Warri and Port Harcourt refineries were idle for six, five and two months, respectively, losing N32.61bn, N22.14bn and N11.51bn.

Kaduna refinery did not process crude oil for 11 months in 2018, while Port Harcourt and Warri were idle for seven and three months respectively, losing N31bn, N59.96bn and N41.71bn.

According to the latest data from the NNPC, Kaduna and Port Harcourt refineries remained idle in January this year.

The refineries have a combined installed capacity of 445,000 barrels per day but have continued to operate far below the installed capacity for many years.

The NNPC had planned to rehabilitate the refineries in order to attain a minimum of 90 per cent capacity utilisation, using third-party financiers and the original refinery builders to provide the requisite funding and technical support.

The corporation, its transaction advisers and an inter-ministerial team on refineries rehabilitation, were said to have reviewed expressions of interest from 28 potential financiers.

But after over one and half years, the negotiations with financiers stalled in December 2018 due to varying positions on key commercial terms.


The NNPC said it had abandoned the strategy of seeking offshore funding due to ‘onerous conditions’ demanded by the proposed financiers.

It said it had to resort to immediate direct funding from internal cash flows and debt financing from the financial markets for the rehabilitation project.

On March 21, 2019, the corporation announced the commencement of the first phase of the rehabilitation of the 210,000 bpd capacity Port Harcourt Refinery complex, comprising the 60,000 bpd old refinery built in 1965 and the 150,000bpd new refinery inaugurated in 1989.

It said the project would be executed by Milan-based Maire Tecnimont S.p.A, in collaboration with its Nigerian affiliate, Tecnimont Nigeria.

The Group Managing Director, NNPC, Dr Maikanti Baru, was quoted as saying that at the end of phase 1, the refinery complex should be able to reach 60 per cent capacity utilisation.

The national oil firm said the first phase of the rehabilitation contract, which would run for six months, would involve detailed integrity check and equipment inspection of the Port Harcourt refinery complex beginning from the end of March 2019.

https://punchng.com/refineries-lose-n231bn-under-buhari-amid-delayed-repairs/amp/

Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by franklyfrank: 6:22pm On Jun 10
Jmk9292:
But those refineries never worked since the days of OBJ..... Or you expect them to work now?
you promised they will work. if they will not work why not sell them?

1 Like

Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by franklyfrank: 6:24pm On Jun 10
Joromi12:
Lose how. What kind of mushroom reporting is this. Money was not spent on them. So how dem lose
salaries are still being paid and other expenses

1 Like

Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by Xander85: 6:40pm On Jun 10
fmlala:
IT IS WELL WITH NIGERIA

Keep on dreaming!
Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by professorT(m): 6:47pm On Jun 10
TheLogicalMind:

I expect a man who budgeted billions to make them work to fulfill his promises.
President is doing his best to make it work but he is a President not a construction worker
Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by xplicit2(m): 7:02pm On Jun 10
What an assertion!

Are these not the same refineries that had packed up before Buhari came to power despite hundreds of billions the Gej administration spent on it?

We all know refineries will spring up in Nigeria soon as the government has gone deeply in partnering with private firms in the establishments of modular and extended refineries.

Even though the headline attempt to mislead the audience into believing we went at loss, what indeed happened was that the refineries paused for activities intermittently. Even though you detest referring to the past, the truth is that these refineries have not been in healthy conditions let’s not attach any spiritual assertion to this please! We didn’t forget how we spent several nights queuing to get these commodities while our anointed hand and leader with the beautiful name GOODLUCK was our pilot.

It is interesting to note that NIGERIA is still the leading producer of crude oil and gas and more interesting is the fact that this administration has not spent any dime on the repair of these refineries! They avoided past mistakes and rather concentrated on getting more refineries spring up. Yet there is adequate supply of petroleum resources in the country though with heavy reliability on import currently.

There is no doubt of a silver lining in Nigeria’s oil and gas industry. Kudos to a dedicated government and no kudos to saboteuring governments who drained us via their kleptomaniac petroleum minister and did not desist in sabotaging current effort in making the current refineries work at their best.

One question we fail to ask is why those past government had never added a single refineries to the existing one over 16 years?

Another question is why will a government leave power and everything simply go down the drain. This is simply because what is obtainable has never been utilised to work up to standard.
Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by BlackSpanner: 7:25pm On Jun 10
olumalcolm:
They transport crude oil to the north codedly in preparation for the fall out and they tell us refineries were redundant for 3months, 5months, 7months etc. They have opened Kaduna dry port also, the list goes on and on like that. He who has ears, let him/her hear, it is coming, be PREPARED. angry

Please I need you to throw more light on this, even if it is privately.
Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by BlackSpanner: 7:26pm On Jun 10
Juliusmalema:
Those things called refineries are just tacti method of sending unquantifiable and high amount of crude to North through pipelines.


Don't ask me how, I was once there.

Hmmn!!! I would like to know more about this
Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by RichyRoma: 7:42pm On Jun 10
ArmaniUhuru:
Ibe Kachikwu is an epitome of incompetence. The petroleum ministry should be probed period.
who want to probe it? Who is the minister of petroleum?
Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by Gentino(m): 8:11pm On Jun 10
ArmaniUhuru:
Ibe Kachikwu is an epitome of incompetence. The petroleum ministry should be probed period.
Have you forgotten that Buhari is the main petroleum minister? Ibe Kachikwu is a junior minister to your saviour Buhari.
Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by ArmaniUhuru: 8:23pm On Jun 10
Gentino:

Have you forgotten that Buhari is the main petroleum minister? Ibe Kachikwu is a junior minister to your saviour Buhari.

Thunda faya you for calling that useless man my saviour. Better bomb dey your head.
Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by Legendguru: 9:48pm On Jun 10
everything.is lost under buhari
Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by dondavinchi(m): 8:52am On Jun 11
ArmaniUhuru:
Ibe Kachikwu is an epitome of incompetence. The petroleum ministry should be probed period.
is he d petroleum minister talk to ur goat of a president
Re: Refineries Lose Over 200 Billion Under Buhari- Punch Newspaper by Kfed4ril(m): 8:59am On Jun 13
ArmaniUhuru:
Ibe Kachikwu is an epitome of incompetence. The petroleum ministry should be probed period.

Buhari is the petroleum minister, ibe is the minister of state for petroleum.

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